Marketing_Management_14th_Edition-min

DEVELOPING MARKETING STRATEGIES AND PLANS | CHAPTER 2 57
Marketing Excellence
>>Cisco
Cisco Systems is the
worldwide leading supplier of networking equipment
for the Internet. The company sells hardware (routers and
switches), software, and services that make most of the
Internet work. Cisco was founded in 1984 by a husband
and wife team who worked in the computer operations
department at Stanford University. They named the company
cisco—with a lowercase c, short for San Francisco,
and developed a logo that resembled the Golden Gate
Bridge, which they frequently traveled.
Cisco went public in 1990 and the two founders left
the company shortly thereafter, due to conflicting interests
with the new president and CEO. Over the next
decade, the company grew exponentially, led by newproduct
launches such as patented routers, switches,
platforms, and modems—which significantly contributed
to the backbone of the Internet. Cisco opened its first
international offices in London and France in 1991 and
has opened a number of new international offices since
then. During the 1990s, Cisco acquired and successfully
integrated 49 companies into its core business. As
a result, the company’s market capitalization grew
faster than for any company in history—from $1 billion
to $300 billion between 1991 and 1999. In March 2000,
Cisco became the most valuable company in the world,
with market capitalization peaking at $582 billion or $82
per share.
By the end of the 20th century, although the company
was extremely successful, brand awareness was low—
Cisco was known to many for its stock price rather than
for what it actually did. Cisco developed partnerships with
Sony, Matsushita, and US West to co-brand its modems
with the Cisco logo in hopes of building its name recognition
and brand value. In addition, the company launched
its first television spots as part of a campaign entitled “Are
You Ready?” In the ads, children and adults from around
the world delivered facts about the power of the Internet
and challenged viewers to ponder, “Are You Ready?”
Surviving the Internet bust, the company reorganized
in 2001 into 11 new technology groups and a marketing
organization, which planned to communicate the company’s
product line and competitive advantages better than
it had in the past. In 2003, Cisco introduced a new marketing
message, “This Is the Power of the Network. Now.” The
international campaign targeted corporate executives and
highlighted Cisco’s critical role in a complicated, technological
system by using a soft-sell approach. Television
commercials explained how Cisco’s systems change
people’s lives around the world and an eight-page print ad
spread didn’t mention Cisco’s name until the third page.
Marilyn Mersereau, Cisco’s vice president of corporate
marketing, explained, “Clever advertising involves the
reader in something that’s thought-provoking and provocative
and doesn’t slam the brand name into you from the
first page.”
The year 2003 brought new opportunities as Cisco
entered the consumer segment with the acquisition of
Linksys, a home and small-office network gear maker. By
2004, Cisco offered several home entertainment solutions,
including wireless capabilities for music, printing,
video, and more. Since previous marketing strategies had
targeted corporate and IT decision makers, the company
launched a rebranding campaign in 2006, to increase
awareness among consumers and help increase the
overall value of Cisco’s brand. “The Human Network”
campaign tried to “humanize” the technology giant by
repositioning it as more than just a supplier of switches
and routers and communicating its critical role in connecting
people through technology. The initial results were
positive. Cisco’s revenues increased 41 percent from
2006 to 2008, led by sales increases in both home and
business use. By the end of 2008, Cisco’s revenue
topped $39.5 billion and BusinessWeek ranked it the 18th
biggest global brand.
With its entrance into the consumer market, Cisco
has had to develop unique ways to connect with consumers.
One recent development is Cisco Connected
Sports, a platform that turns sports stadiums into digitally
connected interactive venues. The company already has
transformed the Dallas Cowboys, New York Yankees,
Kansas City Royals, Toronto Blue Jays, and Miami
Dolphins stadiums into “the ultimate fan experience” and
plans to add more teams to its portfolio. Fans can virtually
meet the players through Telepresence, a videoconferencing
system. Digital displays throughout the stadium
allow fans to pull up scores from other games, order food,
and view local traffic. In addition, HD flat-screen televisions
throughout the stadium ensure that fans never miss a
play—even in the restroom.